RSP stands for "Retirement Savings Plan" and is a type of financial account in Canada for holding savings and investment assets
. It is also known as a "Registered Retirement Savings Plan" or RRSP
. RSPs have various tax advantages compared to investing outside of tax- preferred accounts, and they were introduced in 1957 to promote savings for retirement by employees and self-employed people
. Approved assets include savings accounts, guaranteed investment certificates (GICs), bonds, mortgage loans, mutual funds, income trusts, corporate shares, exchange-traded funds, foreign currency, and labour-sponsored funds
. Contributions to RSPs are tax-deductible based on your marginal tax rate when you put the money in, and there are rules determining the maximum contributions, the timing of contributions, the assets allowed, and the eventual conversion to a registered retirement income fund (RRIF) at age 71
